FIGURE 24-5 -Refer to Figure 24-5.The Economy Is Not in Long-Run Equilibrium

Multiple Choice

FIGURE 24-5
-Refer to Figure 24-5.The economy is not in long-run equilibrium at E₁ because the

A) AD₁ curve will shift back to AD₀ due to an increase in the price level.
B) AD₁ curve will shift back to the left due to a fall in current consumption.
C) AS will shift to the left due to an increase in wages.
D) AS will shift to the left due to an increase in the price level.
E) AS will shift to the right due to a decrease in the price level.